Boilermaker incorporated reported taxable income of $805,000 this year and paid federal income taxes of...
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Boilermaker incorporated reported taxable income of $805,000 this year and paid federal income taxes of $169,050 Not included in the company's computation of taxable income is tax-exempt income of $27750, disallowed meals and entertainment expenses of $32,750, and disallowed expenses related to the tax-exempt income of $1,300. Bollermaker deducted depreciation of $159,000 on its tax return. Under the alternative (ESP) depreciation method, the deduction would have been $50,750. Compute the company's current E\&P Note: Negative amount should be indicated with a minus sign. Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $2,600, and Clyde owns the remaining 40 shares with a basis of $12,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. Note: Leave no answer blank. Enter zero if applicable. Required: a. Getaway redeems 10 of Bonnie's shares for $2,500. Getaway has $21,000 of E\&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 28 of Bonnie's shares for $5,000 Getaway has $21,000 of E\&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 6 of Clyde's shares for $3,000. Getaway has $21,000 of E\&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Getaway redeems 10 of Bonnie's shares for $2,500. Getaway has $21,000 of E\&P at year-end and Bonnie is unrelated to Clyde. Note: Round your answers to the nearest whole number. Complete this question by entering your answers in the tabs below. Getaway redeems 28 of Bonnie's shares for $5,000. Getaway has $21,000 of E\&P at year-end and Bonnie is unrelated to Clyde. Note: Do not round intermediate calculations. Round your answers to the nearest whole number: Complete this question by entering your answers in the tabs below. Getaway redeems 6 of Clyde's shares for $3,000. Getaway has $21,000 of E\&P at year-end and Clyde is unrelated to Bonnie. Note: Round your answers to the nearest whole number
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